Correlation Between Shenzhen MYS and Guangdong Shenglu
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Shenzhen MYS and Guangdong Shenglu and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shenzhen MYS with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Guangdong Shenglu.
Diversification Opportunities for Shenzhen MYS and Guangdong Shenglu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Shenzhen MYS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shenzhen MYS Environmental are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Guangdong Shenglu
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.81 times more return on investment than Guangdong Shenglu. However, Shenzhen MYS Environmental is 1.23 times less risky than Guangdong Shenglu. It trades about 0.25 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about 0.03 per unit of risk. If you would invest 325.00 in Shenzhen MYS Environmental on August 25, 2024 and sell it today you would earn a total of 50.00 from holding Shenzhen MYS Environmental or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Guangdong Shenglu |
Shenzhen MYS and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Guangdong Shenglu
The main advantage of trading using opposite Shenzhen MYS and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Guangdong Shenglu can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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